KUALA LUMPUR, June 23 — Speculations on politics and the potential 16th general election (GE16) are not the main factors influencing foreign investors' decisions, although political stability remains an important consideration in determining investment destinations.
The Investment, Trade, and Industry Ministry (MITI) said investment decisions are generally influenced by broader economic and business factors.
“Although Malaysia has gone through several government administration changes in the past, the continuity of investment policy implementation as well as the MADANI government's commitment to providing a transparent, consistent, and investor-friendly investment climate through MITI and its agencies, have strengthened the country's position as one of the preferred investment destinations in the region,” it said.
MITI was responding via a written reply to the Dewan Rakyat today, published on Parliament's website, to Gua Musang MP Mohd Azizi Abu Naim's query about the government's plans to address negative perceptions among foreign investors stemming from political speculation and GE16.
It added that Malaysia's approved investments across various economic sectors from 2021 to 2025 totalled RM1.7 trillion, involving 30,301 projects that, when implemented, are expected to generate 825,502 new job opportunities.
Of this, foreign investments accounted for RM940.25 billion, representing 54.6 per cent of all approved investments during that period.
MITI noted that investors no longer rely solely on cost advantages but also consider other factors when determining investment destinations, including supply chain resilience.
Policy clarity and the long-term stability of the industrial ecosystem are important indicators of a country's investment sustainability.
“In this context, Malaysia has a mature and integrated investment and industrial ecosystem encompassing the electrical and electronics, semiconductor, medical device, and halal industry sectors, supported by domestic supply chains and local engineering services,” it said.
These strengths enable Malaysia to offer a comprehensive industrial ecosystem and broader market access within the region.
“Furthermore, the availability of strong industrial infrastructure and the integration of domestic supply chains also enhance investors' operational efficiency and reduce dependence on external supply chains that are more vulnerable to global logistical risks and geopolitical uncertainties,” MITI said.
